Monday, November 09, 2009
BERKELEY, CA– After reporting fraud by her CEO to a Board Member on multiple occasions, Porsche Brown was fired from her position as Chief Financial Officer of the Cooperative Center Federal Credit Union in Berkeley.
Specifically, Brown refused to go along with CEO Gary Bell’s directive not to lower mortgage rates for several adjustable-rate mortgage holders. Some of these home-owner should have seen their rates fall by as much as 1% but Bell refused to lower their rates to follow the index the note was tied to.
Additionally, Bell violated the requirements of the National Credit Union Association, the federal governing body for credit unions, that the credit union not take out any new first mortgages because it was in “troubled condition.” When Ms. Brown refused to go along with this unlawful conduct, her CEO told her, “[i]f you don’t do as I say, you’ll need to find some other place to work!”
While Ms. Brown complained to the Board of Directors about this unlawful conduct, nothing was done to change the situation or protect the credit union’s customers from fraud. When her complaints escalated, Ms. Brown was fired.
Ms. Brown filed her wrongful termination lawsuit in Alameda County Superior Court on Monday, November 2, 2009.
According to Plaintiff’s attorney, Angela Alioto, “it is incredible that in this climate, a credit union could continually defraud it’s customers and then terminate someone who was brave enough to take a stand and do the right thing.”